An Interest Only Arm Is Made For 205 000 For 30 Years The Start Rate Is 5 Percent And The Borrower Will Make Monthly I 1 (27.87 KiB) Viewed 139 times
An interest-only ARM is made for $205,000 for 30 years. The start rate is 5 percent and the borrower will make monthly interest-only payments for three years. Payments thereafter must be sufficient to fully amortize the loan at maturity. Required: a. If the borrower makes interest-only payments for three years, what will the payments be? b. Assume that at the end of year 3, the reset rate is 6 percent. The borrower must now make payments so as to fully amortize the loan. What will the payments be? Complete this question by entering your answers in the tabs below. Required a Required B If the borrower makes interest-only payments for three years, what will the payments be? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Interest only payments for the 1 year Required A Required B >
Required A Required B Assume that at the end of year 3, the reset rate is 6 percent. The borrower must now make payments so as to fully amortize the loan. What will the payments be? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Payment < Required A Required B
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